3 Things to Pay for Now That Pay Off in the Future

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When it comes to money, investments, budgeting and planning, it’s a tough balance to strike. You want to make sure any money spent now will be “worth it” in the future, but that’s not always a sure thing. For example, it’s always cheaper to get a whole term life insurance policy the younger you are, but when you have no spouse, children, or anyone else to help financially when you pass, isn’t that a big waste of money? What if you don’t think you even want to get married, have a life partner or have children?

Fortunately, the experts have done the research and leg work for you. There are a few things you can (and should) pay for now that will help you financially in the future. From securing a reputable attorney if you work in a high-risk job to choosing the right retirement account, don’t put these necessities by the wayside. Here are a few to get you started:

  1. An emergency fund

Ideally, you can save at least one year’s income in an easily accessible account such as a short-term CD or high interest savings account. You never know when the next recession may hit, if you’ll be laid off, or if a medical emergency will happen that will drain your bank accounts. Get tips on creating this crucial account from ABC News, and make it a priority when budgeting.

  1. An attorney if you’re a business owner

As a small business owner, you may or may not need an attorney on retainer (which will come with a monthly budget allotment). However, at the very least you need to research an attorney, connect with them, and have their number on hand just in case. The last thing you want is to connect with the first attorney who answers the phone if you’re facing a lawsuit.

  1. Retirement savings

The earlier you start saving for retirement, the easier it’ll be and the more you’ll have. Hopefully, everyone will reach a retirement age. There are certain instances where you can access these funds before retirement, such as with a medical emergency, so don’t think it’s “only” good for your golden years. Take a look at the IRS’ list of retirement plans and meet with an advisor to start plotting your future finances.

There are also life insurance policies for your loved ones who outlive you, pet emergency funds if you have a furry friend, and of course college savings if you have children. A little now can go a long way in the future.

 

Posted in: Financial Advice, Money Saving Tips

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